Goodbye to Retirement at 65 For Seniors, Check New Retirement Age in Canada

For decades, turning 65 has been the milestone for Canadian seniors to begin receiving Old Age Security (OAS) and often Canada Pension Plan (CPP) payments. But recent speculation suggests this tradition may soon change. Rumours have circulated that by the end of 2025, the official retirement age could rise to 67, delaying benefits for millions.

While these headlines have caused concern, the reality is more complex. As of now, no official confirmation exists from the Canada Revenue Agency (CRA) or the federal government. Let’s break down what is fact, what is speculation, and what seniors need to watch for.

Canada’s Retirement Benefits Explained

Canada’s retirement income system is built on three key supports:

• Canada Pension Plan (CPP): Based on contributions during working years, flexible to claim between ages 60 and 70.
• Old Age Security (OAS): A government-funded monthly pension available at age 65 (with residency requirements).
• Guaranteed Income Supplement (GIS): Additional support for low-income seniors receiving OAS.

Currently, CPP allows flexibility, while OAS and GIS are tied strictly to age 65. The recent rumours point specifically to a possible shift in OAS eligibility.

Where the “Retire at 67” Rumour Comes From

Speculation about raising Canada’s retirement age isn’t new. In past years, proposals briefly considered moving OAS eligibility from 65 to 67, but were rolled back due to political and public opposition.

The latest reports claim that by late 2025, Canadians may no longer qualify for OAS at 65 and would instead wait until 67. If true, this would mean:

• Seniors could lose two years of OAS income.
• They would also miss out on inflation-indexed increases during that time.
• The policy would disproportionately affect lower-income seniors who rely on OAS and GIS.

At present, these remain predictions, not confirmed changes.

Impact on CPP vs. OAS Recipients

It’s important to note that:

• CPP is unaffected. Canadians can still choose to claim CPP from age 60 to 70, with adjustments. Early claimers receive less, while those who delay can boost payments by up to 42%.
• OAS and GIS are the focus of the rumour. If the retirement age rises to 67, these payments would be delayed, potentially impacting budgeting for seniors nearing retirement.

For now, Canadians should understand that CPP remains flexible, while OAS continues to be available at 65 until an official change is announced.

CRA’s Position – Fact vs. Fiction

The CRA has not confirmed any increase in the retirement age. All current rules remain in effect:

• OAS eligibility remains at 65.
• CPP rules are unchanged.
• GIS continues for low-income seniors starting at 65.

The CRA has also stated in previous updates that if such a policy shift were to happen, public notification and phased implementation would be provided well in advance.

What Canadian Seniors Should Do Now

Given the uncertainty, seniors are advised to:

• Stay informed: Follow updates directly from the CRA and official sources like canada.ca.
• Avoid rumours: Do not rely on unverified news or social media posts.
• Plan flexibly: Consider different retirement age scenarios in financial planning.
• Review CPP options: Early vs. delayed claiming can make a significant difference in lifetime income.
• Seek advice: A financial advisor can help tailor retirement planning to your unique situation.

Why the Retirement Age Debate Matters

Raising the retirement age from 65 to 67 could have major implications:

• Low-income seniors would lose vital early income.
• Middle-class retirees may need to rely more heavily on private savings, RRSPs, or workplace pensions.
• Government finances could see reduced short-term pension costs but potentially greater strain on healthcare and social programs if seniors delay retirement.

This debate reflects broader global trends, as countries with aging populations reassess pension sustainability.

FAQs – Goodbye to Retirement at 65

Q1: Is the retirement age in Canada officially increasing to 67?
No. The change has only been discussed in media reports and predictions. As of now, OAS remains at 65.

Q2: Will CPP payments be affected by a retirement age increase?
No. CPP is based on contributions and can still be claimed between ages 60 and 70, regardless of OAS policy.

Q3: Who would be most impacted if the retirement age rose to 67?
Low- and middle-income seniors who rely heavily on OAS and GIS benefits.

Q4: How will Canadians know if changes become official?
The government and CRA would make formal announcements and provide a transition timeline before implementing any change.

Q5: Should seniors change their retirement plans now?
No immediate changes are necessary. Seniors should monitor official updates and maintain flexible retirement strategies.